The rising interest rates in the United States have significantly impacted Singapore’s domestic interest rates in the past year. On the downside, it caused a rise in loan rates, making it more expensive for borrowers to take out a loan.
However, the increased rates have made it more lucrative to apply for fixed deposits to grow our savings or Central Provident Fund-Ordinary Account (CPF-OA). Financial institutions like Maybank offer as high as 3.75% returns, which is better than what regular savings accounts provide.
If you are looking for a low-risk and hassle-free way to increase your wealth, the best fixed deposit rates in Singapore may offer just that.
What Are Fixed Deposits and How They Fit Into Your Investment Portfolio
Fixed deposits in Singapore are also known as time deposits. They are a type of savings account offered by financial institutions with a predetermined period at a fixed interest rate for a minimum deposit sum. The time frame usually runs between six months to three years tenures with liable penalty if you decide to withdraw before maturity.
Apply for fixed deposits if you prefer low-risk, low-maintenance investments with guaranteed capitals and returns for the cash or CPF-OA that you put in. The fact that there are no fees or charges for such deposits also means they are a lot more accessible than other forms of investments such as trading stocks and futures that impose intermediary fees and commissions.
If you are building an investment portfolio, incorporating fixed deposits can add stability since they preserve capital and provide a predictable stream of returns. Consider allocating a portion of your portfolio with these deposits with different rates and maturity dates instead of locking a lump sum of money into one. This will ensure you have access to cash when you need emergency funds or are presented with more lucrative investment options than the best fixed deposit rates in Singapore.
Essentially, fixed deposits are secure components of a diversified investment portfolio but may not grow wealth as quickly as some other asset classes. To create a well-rounded portfolio that aligns with your financial objectives and risk tolerance, you must carefully integrate fixed deposits and other types of investments into your strategy. Striking a balance between high-risk and low-risk components allows you to make the most of money-making opportunities, moderate risk exposure and reach your financial goals at a faster pace.
Top 3 Fixed Deposits in Singapore
Ready to apply for fixed deposits with the best rates in Singapore? We have shortlisted the top three fixed deposits in Singapore:
|Institution||Minimum Deposit||Tenure||Interest Per Annum|
|Maybank||S$20,000||12-month or 15-month||3.75%|
|CIMB||S$10,000||9-month||3.55 to 3.6%|
Maybank SGD 12- to 15-Month Deposit Bundle (Time Deposit and iSAVvy Time Deposit)
This account ranks top on our list because the current promotion offers 3.75% per annum for a 12-month or 15-month contract. A minimum deposit of S$20,000 is required with additional S$2,000 deposit into a current or savings account.
This promotion is available to individual, small and medium-sized enterprises (SMEs) and commercial banking customers. Note that you must be a Maybank Savings or Current Account customer before you are eligible to sign up for the promotion. You can apply for the savings, current and fixed deposit accounts via the Maybank website.
Maybank also offers fixed deposits under the CPF Investment Scheme (CPFIS). If you wish to apply for fixed deposits with CPF-OA, do approach the bank directly. You can sign up for the account even if Maybank is not your CPFIS-OA agent bank.
CIMB SGD 9-Month Fixed Deposit Account
With CIMB, you can choose from tenures ranging from 1 to 24 months, with a low initial deposit from S$1,000. But what catches our eyes is the August promotion which offers 3.55% to 3.60% p.a. for a 9-month contract with a minimum S$10,000 deposit.
|Tenure||Personal Banking Customer||Preferred Banking Customer|
|9-month||3.55% p.a||3.60% p.a.|
This promotion is available till 31 August 2023. To apply for this fixed deposit account with CIMB, simply apply online via the CIMB page. You can finalise your deposit with a direct fund transfer via FAST to your new CIMB FastSaver account which will be used to facilitate your fixed deposit placements.
StashAway Simple™ Guaranteed
StashAway may not be a bank but it is supported by Citibank and licensed by the Monetary Authority of Singapore (MAS). Its cash management solution, Simple Guaranteed, is currently offering a fixed interest of 3.6% p.a. with no minimum or maximum deposit amounts for a lock-in period of six months.
To apply for this account, you should download the StashAway App and create a Simple Guaranteed portfolio then transfer funds into it. Make sure to check the prevailing rate listed and lock in the rate when you are ready. The capital plus interests will be made available to you upon maturity.
Fixed deposit accounts come with a variety of configurations and are extremely flexible for those looking for low-risk investments. If you are in the midst of building an investment portfolio, adding fixed deposits can easily shield you from volatility of the stock market while letting you enjoy additional income streams. That said, you should still consider different products offered by reputable brokers in town because they may offer more options to create wealth across international markets.
Check out our roundup of the best online brokerages to find out who is offering the best trading platform based commission fees, international market access and exchange rates.
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The article originally appeared on ValueChampion.
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